Those following along with NTAW Holdings Limited (ASX:NTD) will no doubt be intrigued by the recent purchase of shares by Terence Smith, Non-Independent Non-Executive Director of the company, who spent a stonking AU$1.5m on stock at an average price of AU$0.37. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 15%.

View our latest analysis for NTAW Holdings

The Last 12 Months Of Insider Transactions At NTAW Holdings

Notably, that recent purchase by Terence Smith is the biggest insider purchase of NTAW Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$0.42), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While NTAW Holdings insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.45. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does NTAW Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that NTAW Holdings insiders own 38% of the company, worth about AU$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About NTAW Holdings Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in NTAW Holdings shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (2 are a bit unpleasant!) that you ought to be aware of before buying any shares in NTAW Holdings.

But note: NTAW Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.